Degree in Business Administration

Academic Year 2014-2015

MARKETING PLAN
‘MBC FEST’

Student:
Mari Carmen Barceló Tur

Tutor:
Rosa María Rodríguez Artola
 INDEX

1. Executive summary ................................................................................................ 4

2. Situation analysis ................................................................................................... 6

2.1 Internal analysis ...................................................................................................... 6

2.1.1 Festival presentation ........................................................................................ 6

Description ........................................................................................................................... 6
Mission ................................................................................................................................. 7
View ...................................................................................................................................... 8

2.1.2 Resources and skills......................................................................................... 8

2.2 External analysis ................................................................................................... 10

2.2.1. Analysis of the general environment .............................................................. 10

Sector analysis .................................................................................................................. 10

Pestel analysis .................................................................................................................. 13

2.2.2 Analysis of the specific environment ............................................................... 22

Identification and analysis of competition ..................................................................... 22

5 forces model of Porter .................................................................................................. 25

3. SWOT analysis ...................................................................................................... 28

4. Segmentation, Target and Positioning ................................................................ 29

5. Objectives and Strategy ....................................................................................... 31

Objectives ............................................................................................................... 31
Strategies ................................................................................................................ 32

6. Marketing mix........................................................................................................ 34
Product/Service ....................................................................................................... 34
Price ........................................................................................................................ 38
Communication ....................................................................................................... 40
Distribution .............................................................................................................. 42

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7. Schedule and budget ............................................................................................ 44

8. Control ................................................................................................................... 46

ÍNDEX OF GRAPS, TABLES, FIGURES AND IMAGES ............................................ 47

Graphs .................................................................................................................... 47
Tables ..................................................................................................................... 47
Figures .................................................................................................................... 47
Images .................................................................................................................... 48

BIBLIOGRAPHY ........................................................................................................ 49

Bibliographic sources ........................................................................................... 49

Fuentes Web ..................................................................................................................... 49

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1. Executive summary

In this project we make a marketing plan for the Music Beside Comedians (MBC Fest
from now on). A music festival held in Puerto de Sagunto during Easter time, which
aims to stand out from the 'low cost' formats flooding the Valencian community and
addressed to an adult audience, combining with concerts, contemporary performing
arts, design and illustration, and days of debate on the current music scene.

To begin with, we start with the current situation analysis of the festival, where we
study the resources and capabilities of the festival, the environmental factors
surrounding and affecting it and its main competitors.

Note that, among other factors, the strong impact of the economic crisis and the
proliferation of new information technologies have had a significant impact on
consumer habits and the change of attitudes in consumers, now these are more likely
to save and they are much more demanding and thoughtful in their purchases, which
involves making an extra effort to meet the new requirements.

Following this we summarize a number of strengths and opportunities that should be

seized and other weaknesses and threats to correct and avoid.

And we also see how the festival aims for a target audience with cultural concerns:
Both men and single women or couples (with or without children), where the age range
between 20 and 55 years. Overall the public is modern, contemporary and constantly
searching for new cultural experiences.

Then, in a structured way we define business goals and detailed strategies and actions
to take to achieve them within the deadline of one year. To achieve the objectives, the
MBC Fest follows a competitive strategy based mainly on differentiation, in order to
better adapt to the needs of the audience and offer a quality service over the
competition.

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Moreover, as the actions taken by the company remain scarce, we make new
proposals in all areas of the marketing mix to help achieve the objectives. Highlighting
some as the expansion of the distribution network, or in relation to the promotional
activities, offer a discount to people who have attended the previous edition of the
festival, and promote loyalty or a very important one, which is adding the
communication tool of direct marketing, using the mailing, as it is one of the most
important unconventional means within direct marketing.

The ending point of the work is a schedule where the dates, when we make the
proposed measures and quantification of the budget of these actions, are detailed. We
also include a few indications to control the successful completion and implementation
of these proposals.

In short, this project aims to settle this new festival, to promote its growth and
expansion, offering consumers something different that appeals to them and make
them enjoy the experience of MBC Fest.

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2. Situation analysis

2.1 Internal analysis

2.1.1 Festival presentation

Description

The MBC Fest is a festival born in 2014 with the intention of bringing together some of
the most current musical offerings and contemporary performing arts. Also holds out
the prospect to take root in the environment where it takes place, starting from the
ancient tradition of theater in the town of Sagunto to the arrival of the first major festival
of forefront rock and electronic music. For this, the MBC Fest has chosen an
emblematic space, the industrial environment of the Port of Sagunto, to support the
enormous value of Valencian industrial heritage. In addition, the festival is 100% made
of Valencian professionals, technicians and capital.

The contest is trying to progress in its proposal by generating globally an experience as

satisfactory as possible to its visitors. Trying to take care of every single aspect, such
as resting or eating well, during the MBC Fest weekend.

All of it at affordable prices for its attendants, but without detracting from conditions to
their cultural enjoyment nor the festival target: to enrich public and artists from a
multidisciplinary and forefront offer.

It should be noted that the MBC Fest proposal is global, it wants to bring to Spain some
of the leading rock groups, of the most advanced electronic music sessions, performing
arts in 'micro' and street formats, gastronomy from 'Street Food' and graphic design
and illustration.

As for the cuisine, the MBC Fest, in its intention to complete an enriching experience
for the audience, bets for the emerging trend of 'Street Food' and 'Food Trucks', small
vans or trucks adapted to maintain and develop an effective 'take away' food service.

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Both trends reconcile affordability with gourmet processing and a wide range of
restaurants.

This gastronomic model based on quality and speed, not only gives a distinctive
hallmark to the festival in comparison to other industry events, but it opens the door to
something unique: the cuisine at a festival.

Finally, it is important to stand out the accommodation at the festival. The MBC Fest
has a camping area from which you can access the festival site on foot and in less than
5 minutes. The camping area is designed to meet the needs of those who prefer to stay
near the festival: from hot showers, toilets and medical service, catering stands,
transfer to the premise's entrance and common areas.

Always thinking to improve the experience of the audience, MBC Fest offers a range of
1-3 star camping services to facilitate a stay provided with all comforts.

In addition, free child care with perfectly equipped facilities will be launched for parents
staying at the camping area.

Mission

Being a festival that has just been born, MBC Fest mission is to offer the public the
best rock and electronics bands of the moment, as well as cutting-edge performing arts
at an affordable price, but without detracting from the conditions of cultural enjoyment
and trying to take care of all aspects of a festival, such as resting or eating right.

This way the aim is to achieve the loyalty of all attendants, by generating an overall
very satisfying experience on its visitors. Furthermore, the organizer´s intention is to
generate the highest possible return to the town and generate actions that will reverse
towards its inhabitants.

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View

The MBC Fest intends in the future to consolidate itself as a great festival in the
country and become a reference both nationally and internationally of contemporary
music and avant-garde performing arts, standing at a suitable place and offering the
best services to spend a good weekend.

2.1.2 Resources and skills

Through an analysis of the resources and capacities of MBC Fest, we want to
understand the role of these as the basis for competitive advantage.

In terms of resources, we can classify them into tangible and intangible resources.

Among the tangible resources we distinguish the financial and physical resources.
Referring to the financial, the company that holds the MBC Fest, Inversores Reunidos
2014 SL, has both equity contributed by a major investor (90% of these financial
resources are obtained by the investor) and external financing resources (the
remaining 10%), obtained by the sponsors. In relation to physical resources, they count
on hired and given resources by the investor, as well as the offices of the company
located in the heart of Valencia, available resources , equipment or the premises where
the festival is held. This last is a very important resource, since it is an emblematic
space located in the industrial area of Puerto de Sagunto, a key place for its location
which allows easy access to the festival to enjoy the environment and have a good
weekend.

On the other hand, in terms of intangible resources, we find the human resources, the
technological and the organizational.

In this particular company, the human resources are a staff of highly skilled workers,
with well perfectly developed skills for the position, highlighting the capacity for
teamwork and experience in the sector. In terms of training, the MBC Fest takes

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training programs specializing in each of the areas or jobs in the company, also as
additional training, it provides training in occupational hazards for all workers.

One of the most significant technological resources available to the MBC Fest are the
'tacles' bracelets, these are a smart bracelets incorporating a chip for linking the
accounts of social networks. Drinks can be paid through the bracelets; they are
previously loaded with money so there is no need to carry it around, which allows
consumers to pay safer, faster and more conveniently.

In addition, to obtain any information about the festival you just have to access their
web page "www.mbcfest.com" or their social networks Facebook and Twitter.

With regard to organizational resources, the MBC Fest, being a festival of new
creation, it doesn´t yet have a great reputation, although after the first edition this is
expected to change and begin to build a reputation for the MBC Fest among national
festivals.

Another one of their resources are cooperation agreements. The MBC Fest has
developed a cooperation agreement with the city of Sagunto, which allows the benefit
to all residents registered in the town wishing to attend the festival a discount on the
price of admission. Through this agreement there has also been a job opening for
unemployed residents, so that they can occupy most of the jobs generated. Another
partnership agreement is with another great festival of Valencia, the Deleste, which will
participate in the MBC Fest and vice versa. From this agreement, the MBC Fest
becomes the main sponsor of Deleste. And, through this agreement it´s been offered a
limited pack of cheaper tickets to attend both festivals. On the other hand, they have
also signed a membership commitment to the “Institut Valenciá de la joventut -
Generalitat Jove” (IVAJ.GVA JOVE), which aims to enable young “Carnet Jove”
holders benefit from different advantages and promotions, including 20% discount on
tickets to the festival.

To conclude this section, we mention the policy of Corporate Social Responsibility

(CSR). The MBC Fest is very committed, both socially and environmentally. We can
observe this commitment through various actions taken, amongst them we highlight
four: With regard to social actions, one of them is a kilometer 0 policy, already named
above, is that the working positions generated are occupied by as many neighbors as
possible. Another social action undertaken by the MBC Fest is the collaboration with
the NGO 'Voces' to build a small conservatory in Kenya. Moreover, also works with the
'Asindown' Valencia foundation for those affected with Down Syndrome can enjoy a

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day at the festival. Finally, with regard to the preservation of the environment, the
festival features Green Brigades to keep a clean festival in a greener way.

As for the skills, all the resources listed above, complemented by management
decisions to achieve the coordination of these in addition to the training, experience
and high degree of knowledge of workers in the sector, make the MBC Fest have good
organizational skills. Among the capabilities possessed we must point out the ability to
adapt and innovate, since they have adapted to the current environment, a turbulent
environment, to offer a different festival that gets to many people´s taste.

2.2 External analysis

2.2.1. Analysis of the general environment

Sector analysis

In this section we will make a small tour in the evolution of the sector in Spain, since
the field of live music has great weight in the Spanish economy.

Until 2008, this sector maintained an upward trend in all indicators. However, from that
moment they begin to feel the effects of the crisis. In recent years the sector has also
been affected by factors such as the increase in VAT and consumption habits, causing
a decline in its bid, attendance and revenues.

During 2013 a total of 103,208 concerts, 11.4% less than the previous year were held
(SGAE Yearbook of the performing, musical and visual arts). The number of viewers
also decreased, in this case 12.4% and stood at 22,839,999 attendees (Graph 1).

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 Graph 1. Evolution of live music spectators 2004-2013

Source: SGAE

As for the collection of live music, in 2013 there was a total collection of 148,473,143
euros, 13.6% less than the previous year, representing a loss of 23,262,389 euros in a
single year (Graph 2).

Graph 2. Evolution of the collection of live music 2004-2013

Source: SGAE

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The first known data related to 2014 show an improvement in live sector in Spain.
According to data provided by the 'Yearbook VI Live Music', published by the
Association of Music Promoters (APM), this sector closed 2014 in green numbers for
the first time in four years, with net sales of 173,5 million euros. An increase of 9.76%
over 2013 figures.

The good news from the live music sector come through festivals. These continue to
consolidate the classic appointments and developing new proposals that seek to open
gap in the market. Festivals work, and proof of this is that competition has increased.

Such is the potential of music festivals that they are already one of the main engines of
the live industry. These are based on an ideal formula in times of crisis: dozens of
artists in exchange for a single entry.

The number of festivals that took place in 2013 in each region are shown in Image 1, a
total of 330 throughout the Spanish territory. The size of the communities shown in the
map is proportional to the number of festivals held.

Image 1. Total of festivals in Spain by regions in 2013

Source: Association of Music Promoters (APM)

In early 2015, the European Festival Market Census, prepared a report on the state of
European festivals in 2014, in which it is revealed that the health of European festivals
in 2014 was very good and the trend is improving. The data show that attendance at

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festivals in 2014 increased 3.3% compared to 2013 and everything indicates that in
2015 will increase.

Pestel analysis

To analyze the influence of different factors affecting the general environment MBC
Fest, we will use the PESTEL analysis. This study analyzes the political and legal,
economic, social, technological and ecological factors in Spain affecting, encouraging
or hindering, at music festivals sector.

Political and legal factors

The current political situation being experienced by Spain is characterized by great

instability due to the economic crisis facing the country, suffering high levels of
unemployment and a lack of confidence in the markets.

In this situation we must add the continuing government fiscal adjustments. One that
stands out is the rise in value added tax (VAT) which the government approved in
September 2012, where the general VAT rate from 18% to 21% and the reduced rate
of 8% increased to 10% maintaining the super-reduced rate at 4%. This decision
makes prices rise, so that consumers choose another product or service cheaper, also
reducing their consumption and even ceasing to purchase.

In this political situation that Spain is, we found several factors that aggravate it. Among
these we find corruption (Gürtel case, Nóos case, Barcenas case, etc.), a factor that
becomes a major concern for the Spaniards. According to the barometer of the "Center
for Sociological Research" (CIS), in October 2014, corruption was the second most
important problem for 42.3% of Spaniards after unemployment, which accounted for
76%.

In the current political situation, where 31% of Spaniards consider it bad and 49.5%
consider it very bad and (according to the barometer of CIS October 2014), we must
add that the confidence of the Spanish for improvement next year is not good, since

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about half of respondents (48.1%) say the situation will remain the same, compared
with 11.6% who say it will improve.

Due to this situation of political instability that is Spain, we must also be alert to
possible new laws that may come to light and that may affect our business, such as
legislation relating to intellectual property.

Economic factors

In this section we discuss the economic situation in Spain (factors such as gross
domestic product (GDP), unemployment, taxes, etc.). The global economic crisis we
are experiencing also affects the activity of Spanish companies, those related to the
sector of festivals as well of other sectors.

One of the most important economic factors to consider is the GDP of Spain, as this
will help us get a clearer picture of whether the Spanish economy is growing or not.

The data in Graph 3 show the annual rates of GDP by quarters from 2010 to 2014. As
we can see, the annual GDP growth recorded in the fourth quarter of 2014 was 2%.
This is 1.3 higher than in the first quarter (0.7%), so we see that the Spanish economy
has experienced an improvement.

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 Graph 3. Quarterly evolution of GDP in Spain

Quarterly evolution of GDP in Spain

4

2
1,6
2

1,3
0,5 0,5 0,7
0,1 0,1 0
0

-0,4
-1 -0,9 -1
-1,3
-2

-1,7 -1,7
-2,1 -2,1 -2,2
-2,5
-4

% Q1 % Q2 % Q3 % Q4

Source: Own elaboration. Data: INE

By temporary aggregation of the four quarters, we see GDP growth in the full year
2014 stood at 1.4%. These data point to a moderate trend of economic recovery,
where GDP growth will continue the positive (Graph 4).

Graph 4. Annual evolution of GDP in Spain

Annual evolution of GDP in Spain

% GDP growth
2

1,4
1

0
0

-0,6
-1
-2

-2,1
-3

2010 2011 2012 2013

Source: Own elaboration. Data: INE

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Another important economic factor to analyze is the unemployment rate. As we can
see in Graph 5, Spain is affected by high unemployment rates have been increasing
ever since 2007. In 2013 an unemployment rate of 26.09% was recorded, the highest
recorded in the last years. However, this rate decreased in 2014 reaching a 24.44%,
this means unemployment at the end of 2014 was lower than a year earlier, which had
not happened since the beginning of the crisis. The total number of unemployed people
stood at 5.4577 million, down by 477,900 unemployed to a year earlier. So far this
year, according to the Working Population Survey (LFS) these data are improving, the
latest figures from 2015 indicate that the total of unemployed people goes down by
13,100, and stands at 5.4446 million.

Despite this drop, the unemployment rate still remains very high (it is one of the highest
rates in the EU) but it seems that, according to the quarterly evolution of
unemployment, the number of unemployed people will gradually go down.

Graph 5. Evolution of the unemployment rate

Evolution of the unemployment rate

% Unemployment rate

30
26,09
24,79 24,44
25
21,39
19,86
20 17,86

15
11,25

10 8,23

0
2007 2008 2009 2010 2011 2012 2013 2014

Source: Own elaboration. Data: Working Population Survey (LFS)

High levels of unemployment persist, and the reduction of purchasing power make
cultural consumption expenditure (attending music festivals, concerts, the cinema,
theater...) of households has gone down since the beginning of the crisis, as we can
see in Table 1.

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 Table 1. Spending on cultural goods and services

Source: Ministry of Education, Culture and Sports (MECD)

Finally, between economic factors also we include the increase in VAT, mentioned
above, since, although it has been a government regulation, it affects other economic
factors such as the Consumer Price Index (CPI). In addition, a decrease of cultural
consumption tax would encourage and attract more musical tourism.

Socio-cultural factors

As for the socio-cultural factors in Spain we will carry out an analysis of factors such as
population density, the population pyramid, birth rate and mortality or consumer habits.

The Spanish population density has been increasing over time reaching in 2012 93'42
inhabitants/Km2. As shown on Image 2, the areas of greatest population concentration
in Spain are Madrid and peninsular periphery, including Valencia.

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 Image 2. Map of the population of Spanish municipalities in 2014

Source: INE

According to population figures provided by the INE, resident population in Spain to

July 1, 2014 was 46,464,053 inhabitants, 129,183 people less than last year (Table 2).

Table 2. Total resident population in Spain

Source: INE

The population registered a drop of 0.28%, representing moderate annual rate of fall in
the previous quarter, which was 0.46%. Despite this fall, the population growth, from
January 1, 2013, still remains negative.

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 Figure 1. Population pyramid 2012-2052

Source: Population Projection Long Term (INE)

As shown in Figure 1, the Spanish population is experiencing an aging process, as it is

losing population. According to statistics, in a few years there will be more deaths than
births (in 2014 there were 209,482 births compared to the 207,445 deaths). This is a
factor that we must pay special attention to, because if the population is experiencing
an aging process will affect the level of consumption of our industry, music festivals,
since the vast majority of those attending these are young people of between 18 and
50 years.

In addition, the migration balance was still negative in 2014 were 206,492 people
emigrated (most, young people without work) and 156,066 which immigrated. Spain is
again a country of emigration.

Other socio-cultural factors are notably changing consumption habits. In today's society
where everything is changing: there are new models of family structure (single
mothers, divorced parents, families with older children without resources to
emancipate, etc.), the current economic situation, the fact that consumers are more
informed and they are more demanding ... it makes consumer habits be greatly
affected.

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To conclude this section we mention investments in education and health. Although the
level of education of the population is increasing, investments in education and health
are going down, with all the harmful consequences for society that this entails.

Technological factors

The field of music festivals and music in general, is one of the most advanced in the
use of technology in recent years. Year after year, festivals introduce technological
innovations to make the experience more comfortable for spectators. According to INE,
the expenditure on technological innovation amounted to 13.233 million euros in 2013.
These innovations include the payment system without carrying cash by using
wristbands with chip radio frequency identification as a purse, and festival’s bet for live
broadcast via streaming of some of its most important concerts.

On the expenditure on research and development (R&D), this amounted to 13.012

million euros in 2013, representing a decrease of 2.8% over the previous year. As
shown in Table 3, the total expenditure has been dropping gradually since 2008.

Table 3. Total expenditure on R & D

Source: INE

Moreover, the increasing development of information technology (especially social

networks have become a powerful source of information for businesses and
consumers) provides a better understanding of the company, increasing confidence for
consumers in these when shopping online. Electronic commerce becomes increasingly
important. The turnover generated by sales through e-commerce companies with 10 or
more employees reached, in 2013, 195.443 million euros, 6.7% more than in 2012.

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Ecological (Environmental) factors

To conclude the analysis of the factors affecting the general environment MBC Fest,
we will analyze the ecological factors.

Currently, after being aware of the scarcity of resources and the problems of climate
change, sustainability has become an important factor. Both society and governments
are very concerned with the preservation of the environment and measures imposed
are becoming more strict to companies to take care of it.

According to the household survey and environment conducted by the INE in 2008,
which aims to investigate the habits, consumption patterns and attitudes of households
in relation to different aspects of the environment, it shows that Spaniards are very
conscious about environment. Some examples of this awareness are that 96.9% of
Spanish households adopt a habit to save water; and paper, glass and plastic
packaging is separated in three out of four homes.

As for the current legislation, it embodies legislation on the protection of the

environment and promotion of the values of sustainability. Furthermore, recently, there
are also many companies that voluntarily develop Corporate Social Responsibility
policies to demonstrate its commitment to the environment and society.

In the case of festivals, they have a significant environmental impact on its

surroundings, so there are festivals that are developing sustainability strategies to
minimize their impact and increase their success.

In conclusion, there is now greater social awareness of the protection and preservation
of the environment.

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2.2.2 Analysis of the specific environment

Identification and analysis of competition

The analysis of competition in the field of music festivals is a little more complicated
because, as a temporary event, it is likely that at the time of the completion of the
festival there is no other like that can compete directly . Despite this we will make a
brief description, from the perspective of the company (Munuera and Rodriguez, 2007),
of festivals for its subject, date or location could compete with us. Also we will see
some strengths and weaknesses regarding our company.

First we focus on the most direct competitor MBC Fest has since held on the same
dates and is also located in Valencia. This is the SANSAN festival, a national indie
music festival held in Gandia on Easter. The Festival Sansan backs both promising
young artist and those already established. And its poster is composed of a 99.9% by
national artists and international artists 0.01%, ie, one single international group.

The strength it has is the place where the festival takes place, as it is done within the
framework of Gandia Beach, famous to tourists and visitors, both for its reputation as a
party emplacement and as one of the best beaches in Spain. On the other hand, the
greatest weakness is his poster, as the artists who compose it can be seen in many
other festivals, which means nothing new for the viewer.

Then we will analyze six festivals, which have in common strengths such as they are
great festivals, already established and with years of experience, plus they have a
good location have are faithful attendees.

Among these is the Arenal Sound Festival six-day held in Burriana Beach in early
August. The festival brings together more than 120 artists of different styles of music
(indie, rock, pop, electronic...).

A notably weakness in our company is the value for money (half - high). This festival
not known for the quality of its lineup, but it's big crowd is mainly due to the party that is
generated inside and outside the festival.

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Primavera Sound is another competitor. The Primavera Sound festival, held in
Barcelona since 2001, is a festival that has become a reference model of urban festival
in Barcelona. This festival stands out from the rest of macro musical events and is
characterized by an artistic line marked by the pop, rock and most underground trends
of dance music.

Referring to the weaknesses that we can find we can only mention that tickets have a
very high price, but the value is not a weakness.

Another competitor is the International Festival of Benicàssim (FIB). The IBF is a

festival of independent music, since 1995 brings together the best groups and global
artists in this field. It is also an international benchmark, where much of its audience
comes from neighboring countries, especially the United Kingdom.

One of the weaknesses of the festival is the value for money, the price continues to be
high, and however, the quality of the poster is lower than it used to be. This is due to
mismanagement of the cartel by the new investor.

We also have a beginner but strong competitor such as LES ARTS FESTIVAL. This is
a new music festival indie-pop that takes place in the City of Arts and Sciences in
Valencia. The festival was born the same year as the MBC Fest, therefore it shares
some of the threats and opportunities with ours.

One of the weaknesses in comparison with ours is the variety and quality of its lineup,
since this is lower. Despite this, we must consider its price is very low, which gives it a
strong point in its favor.

Finally, two festivals smaller than those we have just mentioned, but with the same
potential they are the LOW Festival and the SOS 4.8. These two festivals are also
independent music, the first to be held in Benidorm (large tourist city) in full festivalera
campaign (July) and the second to be held in Murcia in early May.

With regard to the weaknesses of these we find that they are smaller festivals that
bring together not so many groups as festivals we have named above.

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The following table (Table 4) shows a summary of MBC Fest competitors based on the
number of attendees at each festival:

Table 4. Summary of competitors by number of attendees at each festival

DURATION
Nº FESTIVAL CITY SPECTATORS
(DAYS)
1º ARENAL SOUND BURRIANA 250.000 6
2º PRIMAVERA SOUND BARCELONA 190.000 3
3º FIB BENICÀSSIM 120.000 4
4º LOW FESTIVAL BENIDORM 75.000 3
5º SOS 4.8 MURCIA 70.000 2
6º SANSAN FESTIVAL GANDIA 40.000 4
7º FESTIVAL DE LES ARTS VALENCIA 22.000 2
Source: Own elaboration. Data: Association of Music Promoters (APM)

On the other hand, there is also a consumer perspective (Munuera and Rodriguez,
2007) when analyzing the competition, which is based on four levels of competition
(Figure 2).

Figure 2. Levels of competence

Budget

Generic

Product
category

Product
form

Source: Own elaboration. Data: Manuera y Rodríguez, 2007

24
These seven festivals we have analyzed above are competing in the form of product.
They are competitors because they have similar attributes to our company. Therefore
we must convince the market segment that we address to that our festival is better.

Moreover, besides these festivals, there are also competitors in the category of
product, ie offering similar products but not the same (lack of any attribute or have
different style). In this kind of competition, we can include festivals of music style very
different like Viña Rock, Rototom and Sonar.

In this analysis, we must also take into account generic competition. Such competition
includes companies offering products that meet the same need as us but differently, ie
substitution products. In this case we could include any type of concert to celebrate
music groups, where we have to try to convince the market that the product category
(group of concerts) we offer is most desirable to satisfy the general requirement.

And finally, we would have the competition-level budget. Competitors who are part of
this level would be those that offer products that fight to get the customer to spend your
budget on them and not on us, for example, any leisure activity, like going to the
movies. Therefore, we have to see consumers to invest in our festival (generic product)
is the most satisfying way to spend the available budget.

5 forces model of Porter

For the analysis of the specific environment of the sector in which our company
operates we will use the model of the five competitive forces of Porter.

The five competitive forces that make up the model are: the intensity of competition in
the sector, the threat of new competitors, the threat of substitute products or services,
the bargaining power of customers and the bargaining power of suppliers.

25
First we focus on the INTENSITY OF COMPETITION. By performing the above
analysis we see that the number of competitors is very high. It is also an industry that is
growing, so the number of competitors will continue to increase because, although
some festivals will not thrive, many others will do.

On the other hand, we must consider that although there is a great number of
competitors operating in the sector, direct competition is not as high and there is no
rivalry among competitors, since it is a festival that takes place at a time of year
performing few festivals and is located in an area, Puerto de Sagunto, which has not
yet competitors.

Therefore, we can say that, although there is a growth of music festivals of various
kinds and styles and the competition is quite substantial, direct competition is much
lower, so, so far, not a great risk to the project.

Secondly, we analyzed the THREAT OF NEW ENTRANTS. The entry of new

competitors in the field of music festivals is defined mainly for being a fairly saturated
market, since the demand in the domestic market may be satisfied due to the large
number of music festivals in our country. To this amount of festival offers there is to
add the reputation of the best known festivals (FIB, Primavera Sound, BBK Live ...) and
more attendees, as to compete with them is a very difficult challenge. It should also be
noted another big entry barrier for new competitors, as is the need to invest large
financial resources to carry out the first editions of a festival.

As for THE THREAT OF SUBSTITUTE GOODS, we can say that there is a lot of
alternative services, as the main attraction of the music festivals is the large number of
concerts featuring in a few days at a reduced rate compared to attending a concert by
one group. And while there are some services that may be substitutes in part, they do
not offer the comprehensive solution offered by music festivals.

Fourth we analyze BARGAINING POWER OF CUSTOMERS. Our customers, those

who attend our festival, have a quite high bargaining power, since, having a wide
variety of festivals in Spain, they can choose to go to other festivals and not ours.
However, we find a strong point, which is that the bargaining power of customers is not
absolute and is lower in some cases, since the MBC Fest is characterized by a type of

26
highly differentiated music groups that most other festivals do not offer. Therefore, for
customers looking for this certain type of music, exercising bargaining power is not as
high.

And finally, we find BARGAINING POWER OF SUPPLIERS. As the MBC Fest opts for
professionals, technicians and mainly Valencian capital, the number of potential
suppliers is greatly reduced, so these providers have a greater capacity for negotiation
than other music festivals may have. Also, being a new festival, the degree of
bargaining power of suppliers depends heavily on the influence of the festival in the
sector, we can say that, for the moment, as it is not a well-known festival, Suppliers
have enough bargaining power.

27
3. SWOT analysis
The SWOT analysis is a tool used to assess both the weaknesses and strengths of the
organization and the threats and opportunities offered by the environment. The main
objective of this analysis is to help raise the actions that should be implemented to, on
the one hand, enhance the strengths and try to improve weaknesses to turn them into
other strengths, and on the other hand, try to minimize the effect of threats and
opportunities of the environment.

Therefore, from internal and external analysis we have done previously, we will make a
summary of the main factors that affect the marketing strategy of our company.

WEAKNESSES STRENGTHS
Internal Analysis

- Good value for money.

- Limited resources. - Prime location.
- Low market share. As a new festival - Collaboration agreements with
is beginning to create a gap in the different institutions and festivals.
market. - Product differentiation. It is the
competitive advantage of MBF Fest.

THREATS OPPORTUNITIES

- The VAT increase. This makes the - Strong trend of using ICT. Thanks to
products more expensive, so that the new sales channel, e-commerce,
External Analysis

consumers opt for cheaper products companies have a huge opportunity

or directly stop consuming it. for growth and expansion.
- The economic and financial crisis. - Apparent improvement in GDP.
- The reduction in household - The unemployment rate begins to
spending, having their income been decline.
diminished. - Boom of attending festivals.

28
4. Segmentation, Target and Positioning
First, before defining our target we will define segmentation criteria. In our case, the
MBC Fest, does not offer a single service, but it does target a single type of customer
(individual customers), that is, we turn to a single segment, so that a hedging strategy
will continue Expansion of the product line. Therefore, with regard to the aspects that
characterize individual customers, targeting criteria are:

Demographic Phsicodemographic Criteria by consumer

criteria criteria behaviour

• Age (between 20 y • Lifestyle and • Seeked benefit:

55 y.o.) personality: - Variety
• Income (average) - Outgoing - Quality
• Marital status - Innovating • Positive attitude
(single, couple, with - Modern towards new
or without children) - With cultural services
curiosity

Based on these segmentation criteria we define our target audience as:

"Both men and single women, couples (with or without children), who decide to enjoy
live music, preferably in the company of friends or family. The age range between 20
and 55 years and have an average purchasing power. Overall it is a modern,
contemporary and constantly searching for new cultural experiences public. "

After defining the target audience we have made a positioning map (Figure 3) to see
what position we occupy in the minds of consumers, that is, the image they have of
MBC Fest over the competition.

29
 Figure 3. Positioning map

Source: Own elaboration

Our company is positioned as a pop festival that offers a very good quality at a middle
affordable price. The MBC Fest gets positioned as such by promoting its competitive
advantage, based on its strategy of differentiation, which will be explained below.

As shown in Figure 3, its main competitors in terms of quality are the SOS 4.8, FIB and
Primavera Sound, having these higher prices than our festival. Moreover, competitors
in price are smaller festivals than the quality of the poster and the festival as a whole is
less, these are the SANSAN FESTIVAL and FESTIVAL LES ARTS. Finally, we find
companies that are in a position where quality is similar or even lower and have a
higher price (ARENAL SOUND FESTIVAL and LOW), this is mainly because they are
renowned festivals where many young people who come do not care, in general, the
quality of the festival.

30
5. Objectives and Strategy

Objectives

To carry out the mission of the MBC Fest we will establish annual targets, by which we
will measure the progress of the festival. So we divide the goals into three types:

General objectives

o Become a national reference.

o Getting the loyalty of attendants by generating a satisfying experience.
o Generate the highest possible return to Puerto de Sagunto and generate
actions that reverse to its inhabitants.

Specific objectives

o Offer the public an innovative repertoire (in terms of musical groups).

o Identifying ourselves as a new musical approach near the city of Valencia.
o Increase the number of rave reviews about the quality of our content.
o Increase the number of jobs offered in the municipality.

Marketing objectives

 Relationship
o Increase customer loyalty. In the MBC Fest we get at least 65% more
attendees come back in following editions.
o Increase the number of followers on social networks 70% on Facebook,
Twitter and Instagram.
o Achieving a score of 85% or higher in customer satisfaction surveys.

31
  Business
o Increase sales in 8000 over the previous year ticket sales.
o Achieve a 40% brand recognition (reputation).
o Increase domestic market coverage to 70%. We will try to put facilities,
so from the entire national territory, they can come to our festival.

 Economic marketing
o Increase revenue Festival 8%. From ticketing and from sales on food
and beverage drinks in the festival.
o Net profit increase by 10%.
o 1% increase in investment in Information Technology and
Communication (ICT).

Strategies

In this section we analyze, from the point of view of several authors, the strategies that
our company follows.

First, let's analyze the competitive strategy by Porter.

To achieve a competitive advantage, the MBC Fest uses especially the differentiation
strategy, but also some methods to reduce costs and make prices not so high.

As for the differentiation strategy, our company has some distinguishing features that
focus primarily on the quality and innovation of its service, in composition poster bands,
such as performing arts, design and illustration, and the 'Food Trucks'. Therefore, the
MBC Fest tries to make its exclusive source the quality of its services, always bearing
in mind the technological improvement and social responsibility.

As for the strategy of cost leadership, our company is not particularly based on this, but
has the ability to exploit sources of cost advantage that may arise. For example, one of
the sources of cost advantage you have is that when making the collaboration
agreement with the Deleste festival they have been able to make a pack of tickets at a
reduced price for both festivals.

32
Secondly, we analyze the strategies based on performance in relation to the
environment (Miles & Snow, 1978) and in relation to competitors (Kotler and Singh,
1981).

On one hand, according to the terms of Miles and Snow, our company follows an
analyzing strategy since, despite seeking innovative services; it tries to avoid excessive
risks. This strategy is a mix of analyzer and explorer strategy.

Being a newly created festival, with this strategy we want to come out with new
services and enhancing its quality and outperform its nearest competitors.

Furthermore, according to the terms of Kotler and Singh, the MBC Fest follows the
follower strategy. We must bear in mind this is a new festival that is in the growth
phase, therefore, now what is sought it is a peaceful coexistence with a conscious
leader and market sharing.

And finally, let's analyze growth strategies. Ansoff made a classification of four types of
growth strategies (Figure 4) depending on the product that is offered and the market in
which the company operates.

Figure 4. Ansoff matrix

PRODUCTS
Existing New
Existing

Product
Market penetration
MARKETS

development

Diversification /
New

Market development
Integration

Fuente: Elaboración propia

Thus, we see that our company follows the strategy of market penetration, since it
wants to strengthen its presence in the market in which it operates with the services
already offered. That is, as already mentioned; one of the main objectives of the MBC
Fest is to become a national reference by differentiating their services, so it will try to
increase their market sales.

33
6. Marketing mix
In this section, we will analyze both the marketing mix that follows our company and
some proposals that we will carry out to achieve the objectives.

Product/Service

To start with, the MBC Fest is a musical and artistic event which brings together some
of the latest proposals of the rock, electronic and contemporary performing arts, which
not only offers the service of a festival as such, ie, concerts and artistic performances,
but also offers additional services such as hosting service, or transport. Therefore, our
company offers a basic service based on people, that is, singers and performing arts
professionals, including other hybrid services that add value.

As for the portfolio of services of MBC Fest, it is set for the following product lines or
themes: Music, Performing Arts, graphic design and illustration, Conferences,
Camping, Food and Transportation. Below we are going to describe these lines
according to the service levels, first we explain the main services offered by the festival
and then the augmented services that give added value.

In relation to the main services, we have the music, the performing arts, graphic design
and illustration and Conferences:

Music

This line is the basic core service. The concert lineup consists of sub-services that
correspond to the different styles and genres: Rock, Punk-Rock, Pop-Rock Electronics,
Electro-pop, Synth-pop, Indie...

34
Performing Arts

The MBC Fest will feature performances of artistic nature, such as dance or
contemporary theater, to be held in the concert area. Thus, the performing arts will be
part of the festival program, making this artistic branch known.

Graphic design and Illustration

This line of services includes exhibits and displays of graphic design and illustration.
The proposal of this line has two aspects, one of expository mood, in which the public
can access the creation process of works, and other interactive type, where you will
engage festival attendants. Both, with a common axis: The attempt to link the
illustration with music.

Conferences

MBC Fest aspiration is to enrich the cultural

experience of the attendees with debates on
current issues in the field of the music
industry. There are a total of four round tables
held in a unique emplacement, the “Auditorio
del alto Horno”. The aim is to open a window
to reflection and dialogue in which the public
and professionals can share their different
views about controversial issues today. Each
discussion lasts for an hour divided into two

35
parts: a 40-minute discussion moderated by a professional, and another 20 minutes
dedicated to the conversation of participants with each other and with the public.

On the other hand, in relation to the increased services, we find the Camping,
Gastronomy and Transport:

Camping

This service line, the MBC Fest wants to offer a wide

range of accommodation offers. Besides hotels and
hostels that bind to MBC Fest, this offers a camping
site, where you can choose from a tent 1, 2 or 3
stars, according to the needs of comfort you want
(with more or less capacity people in the store, with or without breakfast, etc.).

Gastronomy

In the exhibition site of MBC Fest we find a

variety of catering (vegan, celiac ...)
because it is committed to the emerging
trend of 'Street Food' and 'Food Trucks',
vans or small trucks adapted to develop
effective food takeaway service. Both trends
reconcile affordability with gourmet
creations.

This gastronomic model based on the

quality and speed, gives the festival a distinctive seal over our competitors.

Transport

To finish with the service line, the MBC Fest has got a bus line linking different Spanish
cities: Albacete, Barcelona, Madrid, Murcia, Zaragoza, Alicante, Valencia and
Castellon. In the last two cities the buses leave and return daily.

36
As the purpose of this service is to put facilities to the public who wants to attend the
festival, I think it would be a good thing to take the bus line extending 4 cities: Seville,
León, Lugo and Caceres.

In addition, to facilitate even more the approach to the festival, the MBC Fest has an
agreement with Valencia Taxi Cab, so the shared taxi (when full) from Valencia is
much cheaper.

In this section is also worth to mention one of the basic elements of the MBC Fest, by
which also attracts and seduces the public. This element is the brand image, corporate
visual identity. Following is the official logo of the festival:

Image 3. Logo of the festival

This logo is characterized by its simplicity, elegance and minimalism. It consists of the
name of the festival, with an aesthetic line based on a primary color and a basic
geometric shape. It is a simple but sophisticated logo, aimed at presenting the brand
directly and in a pure way, so that nothing could take away attention from what really
matters, the content and cultural offer in the festival.

37
But the brands are more than just names or symbols, represent everything the service
means for consumers. Therefore, MBC Fest organizers are making a great effort to
create a brand image that convinces and create a loyal, in order to generate the
"mouth to ear" and to become a national and international benchmark.

They just want create a brand that is associated to positive things that reflect it: quality,
variety and prestige.

Price

When setting the price of tickets, we keep in mind that this is the only variable in the
marketing mix that produces revenue to the company and therefore the generated
funds for the festival and is the way of consolidation or survival of it.

In addition, towards the consumer, the price policy is going to serve as a tool for
positioning and help us reduce complexity in purchasing decisions.

As for the method of pricing, the MBC Fest sets its prices in an objective, that is to say,
taking as reference prices for both festivals belonging to our same service category
and the total costs of the realization of the festival.

As one of the company’s strategy is the market penetration, initially, considering the
price for value, they have set similar prices to those of competence, so we can
introduce the service in the market and let people get to know it, and then slowly go up
this price.

In analyzing the prices of different festivals, we have seen that the price range is from
25 to 40 euros on tickets for one day, and 30 to 90 euros in normal tickets for every
day, so the price MBC Fest is located around these. Then we will show the
approximate prices (keep in mind that the price of 3 day tickets and VIP increased
gradually every time we approach the date of the festival):

Ticket 3 days…………………. 32.00 €:

Entrance to the concert venue + Performing Arts + Design and Illustration +

Conference.

38
Ticket 3 days ‘Residents in Sagunto’…………………. 27.00 €

Ticket for people who are registered in Sagunto at least one year.

Ticket 3 days ‘Carnet Jove’…………………. 27.00 €

Discount applies to holders of Carnet Jove.

Ticket VIP…………………. 54.00 €:

Entrance to the concert venue + Performing Arts + Design and Illustration +

Conference + Access to the VIP area with reduced price for drinks.

Ticket MBC Fest + Deleste…………………. 60.00 €

It includes admission every day to the two festivals.

Ticket Friday…………………. 30.00 €

Access to the festival venue only Friday.

Ticket Saturday…………………. 36.00 €

Access to the festival venue only Saturday.

Ticket Sunday…………………. 30.00 €

Access to the festival venue only Sunday.

As for price adaptation strategies, the MBC Fest follows a strategy of promotional
pricing, and captures and stimulates the attention of consumers towards the purchase
of tickets. One of the techniques used to make it, for example, 100 subscriptions at a
reduced price, then when the quota of tickets is over, take another 100 or 150 at a
slightly higher price, and so on. Moreover, as we have seen, also they offer discounts
to certain social groups (those living in Sagunto and registered with the Carnet Jove).

For the price, my proposal for the MBC Fest is that within about two editions time, is
trying to complement the strategy of promotional prices with a strategy of psychological

39
price, since, as we differentiate ourselves by the quality of our service and by category
of musical groups, the price could be a little higher over the competition. We would
apply a pricing strategy for prestige, where festival attendants know they are paying a
price slightly higher than other festivals but they also know that the quality of the
concerts and all the service is superior.

Communication

Then we will define a set of actions that the MBC Fest takes in relation to
communication mix. The five tools of communication mix include advertising, public
relations, sales promotion, personal selling and direct marketing, but in our case, the
MBC Fest uses three of the five types of tools: advertising, public relations and sales
promotion.

As our company is a new festival that still has many resources to be allocated to
communication, investment money is not high, but the investment of time devoted to
this other, as there are currently many media communication that do not require a high
cost to access them and also reach the society.

First, in terms of advertising, MBC Fest uses informative advertising where it wants to
be known. It uses two media communication, radio and outdoor advertising. Regarding
the radio, one of its official media is Radio 3, a radio that gets to a large number of
people at low cost. And, in relation to outdoor advertising, the MBC Fest uses
billboards and posters all over Sagunto Area, which provide the high repetition
exhibition also at low cost.

In this way, my proposal towards advertising is advertising festival on the outside city
buses in Sagunto, Valencia, Castellon and Alicante, so we can reach more people.

In addition, another proposal is announce in two industry magazines, specifically in

Jenesaispop and Mondosonoro.

40
Secondly, we will analyze public relations. In this case, the tools used by our company
are: relations with the press (provides various press conferences, such as for the
presentation of the festival, or to the presentation of the groups attending this), and on
the Internet management and maintenance of their website and social networks
(Facebook, Twitter and Instagram).

In relation to this tool of marketing mix, my proposal is that the company should
distribute festival brochures among the lines of people of the concerts of the artists who
go to the festival concerts and festivals with similar styles, in order to interact and
inform the possible target audience.

Finally, we focus on the promotion. The MBC Fest, to be released and show a small
part of what the festival will be, it makes presentation parties in various pubs in the
area of Sagunto and Valencia. I think this type of promotion is very effective, because,
in addition to a small demonstration of the service to be offered in the MBC Fest, has
an incentive to have the chance to win two tickets to the festival through a draw to be
made between attendees. Another technique to increase sales festival promotional
activities is based on prices to encourage buying tickets in advance, for example
offering a pack of tickets (eg 200) at a reduced price. Or promoting a pack to attend
two festivals (Fest + Deleste MBC).

As for promotion, the company could carry out two drawing for a stay at the 2 stars
campsite among people with the festival ticket and share a photo specified in the MBC
Facebook Fest.

It would also be an interesting proposal for loyalty to the public, offer a discount, the
first three months of the launch of the tickets, to people who have attended the
previous edition of the festival.

Another form of promotion that I propose is the official beer of the festival, the Turia
beer, set, for a specified time, labels festival on the necks of their bottles, and getting
20 of these labels the day ticket is regale the festival (limited promotion of 100 tickets).

In addition to these tools used by the company, I think it would also be desirable to pile
the direct marketing communication mix. You may use the mailing (direct mail), as it is
one of the most important unconventional means of direct marketing. For this it could
send personalized emails about new information festival attendees of previous years,

41
as the company will have a database where all purchases of inputs which include the
name and email of the purchaser to register.

The mailing will also make the presentation party attendants. To contact these also will
create a database with the holdings in the draw is made in the presentation parties,
since in these shares the name, place of residence and e-mail will be collected.

Finally, the festival website will also create a section of subscriptions for anyone who
wants to receive a monthly newsletter with information, offers and promotions of the
festival.

Distribution

The mission of the distribution is to bring the product or service to the consumer in the
conditions, time and right place. In addition, we must take into account the control you
have over the product or service because, as you increase the number of
intermediaries, control product by the company is reduced and the cost increases.
Then we see how our company has a good handle on the service, since it does not use
many intermediaries to distribute its service.

As for the distribution channels, the MBC Fest, being a festival that only takes one
edition, it does not yet have a wide distribution network. Our company is characterized
by two types of distribution channel, one of Level 0 and a level 1, both e-commerce.
Below the detail:

In the distribution channel Level 0, the sale of tickets to the festival is made directly
from the company to the consumer without using any intermediary. This is an online
distribution is made directly to customers online through their website:
www.mbcfest.com

In the distribution channel Level 1, it is made by the company itself (MBC Fest),
retailers (El Corte Ingles and www.notikumi.com) and the consumer (the customer who
will attend the festival). This distribution is also online, except for Corte Ingles, which
can also be physical, tickets can be obtained in one of its stores.

42
The only difference between these two types of distribution channels is that the
distribution of Level 0, the purchase is made solely on the website of the festival,
without using intermediaries, while Level 1 is done on the Web page retailers (and in
the case of El Corte Ingles department stores also).

Regarding the distribution channel level 1, I think it would be beneficial to the festival to
create a new contract with a new retail as Ticketea (www.ticketea.com), as this, as an
intermediary in the sale of tickets is well known and has a great reputation, so it would
be a good tool to promote the festival.

Also, an interesting distribution proposal, related to the feature of inseparability of

services, would add some more physical sales points, in Sagunto and Valencia. These
physical outlets would post offices in these municipalities, as it is a known and trusted
place for all.

Now, let's do a little analysis of design decisions channel. Within five levels of service
desired by customers, we will focus mainly on additional services as our company, so
that festival attendants have a more satisfying experience, it offers additional services
such as accommodation, catering and transport.

As the number of intermediaries, the MBC Fest performs a selective distribution

because it chooses and limits the number of intermediaries to reduce costs and
maintain greater control. Furthermore, the proposal to increase the number of retailers,
we have carefully selected the point of sale of our service.

43
7. Schedule and budget

After analyzing the marketing mix and propose new actions, we will summarize in the
following schedule and see an estimate of the cost of each (Table 5):

Tabla 5. Schedule and budget

ACTIONS

Sept.
May.

Dec.
Nov.
Aug.

Feb.
Mar.
Jan.
Jun.
Apr.

Oct.
Jul.
BUDGET
2015-2016

Expansion bus line 450€

Advertising outside
1,200€
city buses
Advertisement in two
300€
industry magazines
Distribution of leaflets
1,725€
(concerts, festivals)
Draws stay at
1,200€
camping of 2 stars
Promotion discount to
2,000€
attendees of last year
Promoting the Turia
800€
beer labels
Mailing (once a
225€
month)
Creating Web-section
100€
of subscriptions
Contractual
agreement with 2,400€
Ticketea
New points of sale:
3,600€
Post office

Source: Own elaboration Total:

14,000€

44
In the above table (Table 5), we can see all the planned actions and the estimated
budget for each one. The shaded cells mean the period of implementation of these
actions. This time period is one year, starting in April, when the festival takes place.

In the table highlights some actions that are constant throughout the year. As for the
distribution of leaflets at festivals and concerts, this is due to the concerts and festivals
are held throughout the year (there will be months where the leaflets will be distributed
in many places and there will be others months will distributed less). Just about the
mailing, this will take place once a month during the twelve months (one month will be
made up to twice).

It should be noted two actions that are also performed throughout the year and also
have the highest budget. These actions correspond to the expansion of the distribution
network (Ticketea and Post office). The budget for this is the most susceptible to
variations, since the cost of the partnership is zero but is subject to monthly fees which
are determined based on ticket sales made in each month.

The remaining shares are concentrated mainly in the months closest to the realization
of the festival (before and after), and promote the festival to get increase sales:

Advertising on the outside of the city buses that will be made during the two months
prior to the completion of the festival (February and March); the draws of stay at
camping (November to March); discount promotion to attendees of last year, which will
be valid for three months after the festival (April, May and June); and promoting the
Turia beer labels, which will be during the month of March.

It will also take place in April, the extending the bus line, since it is important that
people know from a first time that you can attend without difficulty to the festival. The
same happens with the creation a section of subscriptions on the Website, which is
held in May because it is important to have as soon as possible a good databases of
target audience.

Finally, the ad in the magazines, Jenesaispop and Mondosonoro, will be held in June,
November and March to go informing and reminding people of the festival.

45
8. Control

In this final section dedicated to the control, the MBC Fest has to review and verify the
actions and results of the company are adjusted to the achievement of the objectives,
and failing that, correct deviations. For this you can use a number of indicators that will
help quantify the final result:

First, to review the quantitative objectives, the company will use various methods:
review the annual sales and compare them with the results of the previous year to
verify the procedures performed to increase the number of attendees have been
carried out correctly; also will have control over revenue through the appropriate
accounting element; and, in regard to the increase in the number of followers in social
networks, it will simply be reviewed through the counters from the followers of these.

In the case of qualitative objectives, as they are more difficult to measure, control
method that uses the company will be conducting surveys (for example, on brand
awareness or customer satisfaction) and observation of the impact the festival has
been in the press (press notes positive, reviews ...).

This monitoring and control of activities shall be made quarterly, in order to make the
necessary adjustments in time.

46
 ÍNDEX OF GRAPS, TABLES, FIGURES AND
IMAGES

Graphs

Graph 1. Evolution of live music spectators 2004-2013.……………………………...….11

Graph 2. Evolution of the collection of live music 2004-2013………..………………..…11

Graph 3. Quarterly evolution of GDP in Spain…………………………………….………15

Graph 4. Annual evolution of GDP in Spain……………………………………….………15

Graph 5. Evolution of the unemployment rate…………………………………..…………16

Tables

Table 1. Spending on cultural goods and services………………………………………..17

Table 2. Total resident population in Spain………………………………………………..18

Table 3. Total expenditure on R&D………………………………………………..………..20

Table 4. Summary of competition by number of attendees…………………………..….24

Table 5. Schedule and budget……………………………………………………………....44

Figures

Figure 1. Population pyramid 2012-2052…………………………………………………..19

Figure 2. Levels of competence………………………………………………………..……24

Figure 3. Positioning map…………………………………………………..………………..30

Figure 4. Ansoff matrix…………………………………………………………….…………33

47
Images

Image 1. Total of festivals in Spain by regions in 2013…………………………….….…12

Image 2. Map of the population of Spanish municipalities in 2014………………….…..18

Image 3. Logo of the festival…………………………………………………………...……37

48
 BIBLIOGRAPHY

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Kotler, P. y Armstrong, G. (2008): Principios de marketing. Pearson Educación. Madrid.

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Fuentes Web

Arenal Sound. [Online] Available at: <www.arenalsound.com>

Asociación de Promotores Musicales. APM. V Anuario de la Música en Vivo. [Online]

Available at: <www.issuu.com/apm2014/docs/anuario_apm_issuu>

Asociación de Promotores Musicales. APM. VI Anuario de la Música en Vivo. [Online]

Available at: <www.issuu.com/apm2014/docs/vianuarioapm_2>

Banco de España. Boletín Económico 2/2015. [Online] Available at:

<www.bde.es/f/webbde/SES/Secciones/Publicaciones/InformesBoletinesRevistas/Bole
tinEconomico/15/Feb/Fich/be1502.pdf>

Centro de Investigaciones Sociológicas. CIS. [Online] Available at: <www.cis.es>

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Deleste. [Online] Available at: <www.delestefestival.com>

Estrella Levante SOS 4.8. [Online] Available at: <www.sos48.com>

Festival de les Arts. [Online] Available at: <www.festivaldelesarts.com>

Festival Internacional de Benicàssim. FIB. [Online] Available at: <www.fiberfib.com>

Industria Musical. [Online] Available at: <www.industriamusical.es>

Instituto Nacional de Estadística. INE. [Online] Available at: <www.ine.es>

Institut Valencià de la Joventut Generalitat Jove. IVAJ. [Online] Available at:

<www.gva.es>

Low Festival. [Online] Available at: <www.lowfestival.es>

MBC Fest. [Online] Available at: <www.mbcfest.com>

Ministerio de Educación Cultura y Deporte. MECD. [Online] Available at:

<www.mecd.gob.es>

Periódico El País. El pesimismo económico y político se instala en la sociedad

española. [Online] Available at:
<www.politica.elpais.com/politica/2014/03/05/actualidad/1394020789_343168.html>

Primavera Sound. [Online] Available at: <www.primaverasound.com>

Sansan Festival. [Online] Available at: <www. sansanfestival.com>

Sociedad General de Autores y Editores. SGAE. Anuario SGAE de las Artes

Escénicas, Musicales y Audiovisuales 2014. [Online] Available at:
<www.anuariossgae.com/anuario2014/home.html>

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